Asda Creating Change for Better 2020/21
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Appendix Our priority issues How our strategy supports the UN’s 2030 Sustainable Development Goals Better Planet (SDG 1, 2, 7, 10, 12, 13, 14, 15 and 17) Our action on sustainability supports the broader, global UN-led push for Whether it’s sourcing our products from land a fairer, more sustainable world. In particular, our efforts are contributing or sea, we must strive to protect and restore towards the large majority of the UN’s 2030 Sustainable Development Goals these ecosystems and their biodiversity. (SDG’s). For example, our work to tackle food poverty is helping to achieve Through our operations and supply chain, zero hunger (SDG 1), while our efforts to reduce our carbon footprint are reducing emissions and waste are central to supporting global efforts on climate action (SDG 13). providing our customers with good value without costing the earth. Better Communities (SDG 1, 2, 3, 4, 10 and 17) We work with our communities and local people to help eradicate poverty, support children in crisis and enable breast cancer research and awareness. Food is our core business so we use our expertise and food donations to fight hunger. Better Lives (SDG 3, 10, 12 and 17) The food and drink, as well as the services we provide, must support and enhance our customers’ health at a price that is affordable. Our Pharmacy and Optical store footprint also enables us to make healthcare more affordable and accessible to our customers. Better Business (SDG 3, 4, 5, 8, 10, 12, 13 Which parts of our business does our strategy cover? and 17) Our CCFB strategy covers every aspect of our business, from food to general As a business we respect and support our merchandise. It also covers International Procurement and Logistics, the part colleagues to create a diverse, inclusive, of our business that imports produce from abroad and directs it to our Asda fair, safe and enjoyable place to work. This distribution centres across the country. Increasingly, our George fashion brand also extends to how we treat and work with will become part of this strategy, building on its existing George for Good our suppliers and partners – an ethical and sustainability strategy. compliant business from end to end. 116
Appendix CCFB commitments overview Creating Change for Better commitments overview The goals, commitments and targets we’ve made through our Creating Change for Better ESG Area Target Deadline SDGs strategy are designed to help Asda aim high, hold ourselves accountable and move as rapidly as possible towards fulfilling our ambitions. Our Carbon Our 2040 vision: An end to end net-zero carbon emissions business commitments will galvanise action across our business, led by our senior leaders, supported by robust policies and programmes, and above Commitment 1 50% lower direct GHG emissions (Scope 1 & 2), vs a 2015 baselinee 7, 13 all, propelled forward by the hard work and 2025 dedication of all our colleagues. We’ll monitor Develop measurement of non-direct scope 3 emissions, Commitment 2 12, 13 and report our progress transparently, starting then set targets to 2025 with this, our first annual ESG Report, and importantly, we’ll continue to review and evaluate Nature Our 2040 vision: A regenerative impact on nature, all food sustainably produced our goals to meet society’s evolving needs. Commitment 3 Top 20 commodities sustainably sourced Retailers are operating in a challenging 2, 12, 2025 14, 15 environment and making progress on Commitment 4 Develop a natural resource stewardship programme sustainability is tough for us all. We cannot alone influence the major social and environmental issues we’re addressing through our strategy. We are also partly reliant on technological advances and the contribution and commitment of partners and suppliers, and are affected by external factors such as political will, policy changes, economic uncertainty and market volatility. We’ll be clear about our challenges and honest about barriers to progress. But we won’t stop trying and we won’t be afraid to try new solutions and learn from our experiences – for example, trialling innovative approaches at our new Asda Middleton Sustainability store in Leeds. 117
Appendix CCFB commitments overview ESG Area Target Deadline SDGs Waste Our 2040 vision: A zero-waste world, where nothing goes in the bin Commitment 5 Zero-waste operations Commitment 6 Reduce food waste by 20%, vs a 2015 baseline 2025 12, 13 Commitment 7 Reduce packaging and drive 100% recyclability of what remains Value Our 2040 vision: Carbon-neutral baskets which save our customers money Commitment 8 Enable Asda customers to shop more sustainably 1, 2, 10, 13 2025 Commitment 9 Rapid expansion of cheaper, greener alternatives 1, 2, 10, 17 George Our Sustainability Strategy • 100% of our own-brand clothing and soft home textile products will be responsibly sourced Responsibly • We are committed to sourcing viscose from traceable sources with a low environmental impact 2025 Sourced Fibres • We are committed to sourcing 100% polyester with a minimum of 30% recycled content • We aim to eliminate all hazardous waste being released into the soil, water and air 2025 Hazardous • We will actively participate in the Microfibre Consortium to reduce ocean plastics Ongoing Waste 12, 13, 14, 15 • We aim for all mills to be reporting through Higg index 2022 • 50% of hangers will be reused or recycled • 30% recycled content in all garment polybags Packaging 2025 • All George packaging will be 100% recyclable • All primary paper-based packaging from sustainable sources 118
Appendix CCFB commitments overview ESG Area Target Deadline SDGs Stores to use donations of time, goods and space to support local communities Supporting local Ongoing 1, 10 communities Community Champions to allocate grants to community groups (with funding provided by the Asda Foundation) Community Champions to allocate grants to community groups (with funding provided by the Asda Foundation) Ensure all stores have the ability to donate food by end 2020 (now achieved) 1, 2, 3, Fighting poverty 2021 17 Across 2018-2021 we will donate £20m through our Fight Hunger Create Change partnership to help tackle poverty in the UK We aim to enable our charity partners to provide an additional 24m meals every year by 2021 Helping Building on our 20-year BBC Children in Need partnership to support disadvantaged children, we will support the charity’s efforts to disadvantaged Ongoing 1, 4, 17 deliver emergency essentials to children and their families in the wake of crisis children We will fundraise to help research into a cure and treatments for breast cancer Partnering with breast cancer charities to We will fundraise to enable provision of breast cancer care and support services Ongoing 3 help prevent breast cancer We will raise awareness and provide better information to help encourage a culture of self-checking and support prevention efforts 119
Appendix CCFB commitments overview ESG Area Target Deadline SDGs Increase the proportion of healthy (non-high fat, salt or sugar content) of Asda own-brand products to 60% Reformulation Reduce red traffic lights on Asda own-brand products year on year 2024 3 Continue to improve the nutritional content of Asda Little Angels infant food range in line with government guidance Continue to label all own-brand products in line with the UK’s front-of-pack labelling scheme 2022 Communications Asda’s Live Better icon was introduced in 2020 to signpost the healthiest options in our own-brand ranges. 1,200 Live Better Products to 3 2024 be on offer by 2024 Cartoon characters to be removed from high fat, sugar and salt (HFSS) own-brand products (excluding seasonal food and drinks) 2022 Grow Asda Plant-Based sales by 100% 2023 3, 12 Innovation Continually engage with and support initiatives to address the UK’s nutrition and obesity challenges, including through national Ongoing 3, 17 campaigns, expert working groups and relevant academic projects Value Provide a great value destination for healthcare products, services and advice that customers can trust Ongoing 3 Healthcare Provide a broad range of healthcare services at times and in ways that meet customer needs Ongoing 3 Shopping Create a supportive shopping experience for customers with disabilities Ongoing 10 Experience 120
Appendix CCFB commitments overview ESG Area Target Deadline SDGs We will increase the percentage of colleagues who answer positivity to ‘my manager cares about me as an individual’ in the colleague survey Health and Ongoing 3, 8 Wellbeing We will make sure our colleagues have access to resources to support their mental, emotional, physical and financial well-being, including management support enabled by manager upskilling We will maintain the 2020 score for ‘I feel free to be myself every day at work’ in the colleague survey 8, 10 Ongoing We will continue to improve our development curriculum to include conscious inclusion training and monitor attendance to ensure all line 5, 8, 10 managers attend required modules We will be a member of the Ban the Box campaign by 2021 (Achieved Nov 2020) Diversity and End of We will sign up to the BiTC Race at Work Charter in 2021 (Achieved March 2021) 8, 10 Inclusion 2021 We will achieve Disability Confident Level 2 accreditation in 2021 (Achieved Jan’ 2021) We will achieve silver level accreditation for Inclusive Employers Ongoing 5, 8, 10 We will increase the number of Female Store Managers We will increase the percentage of colleagues who answer positively to ‘I am supported by my manager in my personal development’ in the colleague survey Learning and We will continue to invest in the skills development of our colleagues, supporting them in their career in Asda, outside of Asda and their Ongoing 4, 8 Development life beyond We will continue to support our colleagues to realise their potential in Asda 121
Appendix CCFB commitments overview ESG Area Target Deadline SDGs Regularly assess modern slavery risks to prioritise and strengthen our efforts, and work with our suppliers to improve their human Modern Slavery Ongoing 8 rights performance Supplier Work in partnership with our suppliers and strive to be fair and clear in all our dealings with them – measured through the Groceries Ongoing 8 engagement Supply Code of Practice (GSCOP) survey British sourcing Increase the volume of products sourced from UK suppliers (including chicken, dairy, wheat and potatoes) and source 100% British beef 2021 12, 13, 17 George Our ultimate ambition is for 100% transparency across our supply chain Ongoing 8, 17 Health & Safety We are committed to keeping our customers and colleagues safe, promoting their welfare and providing high standards of safety Ongoing 3 Ethics & Treating people with respect, acting with personal integrity and complying with the laws of the communities in which we operate across Ongoing 3, 8 Compliance our 14 focus areas 122
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